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Drastic emissions target ‘extends the pain’ onto industrial sector

Drastic emissions target ‘extends the pain’ onto industrial sector

Obviously we’re talking about 75 bucks a ton if you want to emit more carbon dioxide than you’re allowed to and a five percent reduction each year is is what the government’s asking for five percent is a is a pretty significant ask isn’t it I mean particularly the big emitters will they have any chance of getting anywhere near achieving that.

Well they’ve been given away to uh to achieve it without having to actually cut their emissions by buying permits and what have you but what we’re seeing here is look that we’ve made a legislative commitment to reduce carbon dioxide emissions by a large amount and now they have to do something about it the safeguards mechanism is the plan and.

Really the the significant part of it is it extends the pain past the electricity generators to other sectors of Industry where they have to reduce emissions as well that includes the gas producers coal producers aluminum makers steel producers so it’s going to have the sort of cost impact that we’re seeing electricity is about to be shunted onto.

The industrial sector as well and the great hope is that industries that are developed around sequestrating carbon through tree planting and Land Management will somehow offset that cost but it’s a high wire correct surely the cost will ultimately end up with the consumer like you know the the person who’s sucking the carbon out of the.

Atmosphere in trees and whatever they get these credits that they can then sell to people like AGL and origen and gas producers but but surely the cost of buying those credits is just going to end up with you and me when we pay our power bills absolutely and not only Power bills everything that is produced will have a.

Component of uh sort of a leaving the the carbon in it and this is pretty dangerous territory like what we’re seeing is uh a transition to a lower emissions economy on a global scale that is inherently inflationary so this is only happening in Australia this is happening everywhere and it’s going to feed industrial costs and unit of.

Production costs right through the global economy what what this has produced is a blowback in places starting in Europe where they’re saying well if we’re going to compete with other countries they have to do the same as us so we’ll put up trade barriers and tariffs uh the Albanese government yesterday said look it’s open to.

Considering this as well the US has said well they will look at a carbon border adjustment too so it’s a pretty slippery slope that uh what what starts is you know and understand tangible thing to protect local industry can quickly become the nightmare of restrictive trade that Australia’s always argued to fight against.